Kylea Tink (North Sydney, Independent) Share this | Link to this | Hansard source

When I had my three children between 2003 and 2007, government-provided paid parental leave did not yet exist. I was, however, lucky enough to work for an employer who, of their own volition, provided paid parental leave for a period of 12 weeks, which you could take at half pay if you wished. The kicker in the program, however, was that you only received the six weeks of salary whilst on leave, and you needed to return to work to receive the balance, with an underwriting that if you then left their employment in the next 12 months, you would be required to pay the parental leave back. The program was groundbreaking. As an American firm, they saw their investment in this scheme as something that was not only good for the individual, as it encouraged loyalty, but also ultimately good for their business, as it boosted retention and job satisfaction. It's not an overstatement to say people jostled to be employed by the company I worked for.

In this context, 24 years later, I'm really excited to be able to stand in this House today and welcome this bill, which ensures parents receive a superannuation contribution on top of their parental leave payments. This development comes on top of earlier measures to improve families' access to government paid parental leave, provide parents with more flexibility in how they take their leave and encourage families to share care. The legislation will see superannuation paid on government paid parental leave beginning 1 July next year. I wish it was sooner, but I understand why it is set at that date. Eligible parents with babies born or adopted on or after 1 July 2025 will receive an additional payment of 12 per cent of their parental leave payment as a contribution paid directly to their nominated superannuation fund.

As we know, this legislation is part of a package of reforms to Australia's Paid Parental Leave scheme delivered by this government. It follows legislation passed mid last year that changed the family income tests and made it easier for families to share care. It also follows legislation passed earlier this year that increased the number of weeks a birth parent would be eligible for paid leave under the scheme from 20 weeks to 22 weeks, further extending over time to 26 weeks in 2026 and including 'use it or lose it' provisions for the non-birth parent.

The package of reforms is long overdue, and I thank all of those who have tirelessly advocated for these improvements over many years. The changes that are now being made to our paid parental leave system are a result of significant, consistent advocacy from various individuals and organisations, many of which have been calling for these changes since the introduction of the Paid Parental Leave scheme in 2011. I am so grateful that this government has listened, at least partially, to the voices of women and families, to the women's movement, to the health, aged-care and community services sectors, and to unions, economists, businesses and employers.

Including superannuation on top of maternity leave was a key recommendation of the Women's Economic Equality Taskforce, and it is a necessary step towards closing the gender super gap. Parental leave is the only form of leave that doesn't attract a super guarantee, leaving many rightly questioning why it has taken so long to rectify this perverse situation. In fact, when I surveyed my community of North Sydney for their views on parental leave reform, 100 per cent of the people who responded indicated they would like to see superannuation payments added onto paid parental leave payments. For most people, this reform seemed obvious.

The reality is that parental leave policy settings have a significant and wideranging impact on families, children, women, the economy and, ultimately, our society as a whole. Right now Australian women retire with, on average, 47 per cent less super than men. A major contributing factor to that inequity is the lack of super on parental leave. This is then exacerbated by other factors, including the current Australian gender pay gap of 19 per cent on average, the fact that mothers usually return to work part time after having children, an inequitable labour market and household care dynamics.

For a primary carer, usually a woman, the accumulation of superannuation savings is interrupted while on paid parental leave, and the leave itself is commonly extended by several months of unpaid leave. The effect is compounded over years, resulting in a large gender disparity in retirement balances, and is exacerbated on return to work, with women commonly rejoining the workforce on a part-time basis after their parental leave period has ended. The inequity that occurs during parental leave follows the primary carer throughout their career and into their retirement, creating significant inequalities in retirement incomes.

Beyond boosting super balances, paying super on government funded paid parental leave will help normalise parental leave as a workplace entitlement, reinforcing the understanding that paid parental leave is not a welfare payment but rather a workplace entitlement just like annual leave or sick leave. Additionally, it will address one of the financial barriers that discourages men from taking on their share of parental leave, encouraging families to more evenly distribute caring responsibilities.

The bill before us will ensure the super contribution paid on top of the government parental leave will match the superannuation guarantee rate as of 1 July of the financial year the leave is taken and will rise with any future increases to the legislated superannuation guarantee. The contribution will be made annually by the ATO at the end of each financial year and will include an additional interest component to address any forgone superannuation fund earnings as a result of the payment not being made more regularly. This is a really sensible and welcome approach.

Improving and driving gender equality is vital to both the wellbeing of our society and the success of our economy. As the Grattan Institute has noted, greater sharing of childcare is one of the best ways to improve women's economic security. From being caregivers, nurturers and educators to taking on professional roles in community leadership, women's essential contributions are often undervalued and unpaid, perpetuating economic inequality. Those outdated systems, policies and norms discount women from active participation in our society and our workforce. Indeed, the estimated value to the Australian economy that could be realised by purposefully removing the persistent barriers to women's full and equal participation in the economy is a staggering $128 billion.

The Women's Economic Equality Taskforce reported Australian women still face deep gender inequality and continue to shoulder a disproportionate burden of unpaid labour across all spheres of life. We can and must do better. I'm hugely supportive of an improved Paid Parental Leave scheme in Australia and I welcome these reforms, but I also firmly believe we can aim even higher. With so much evidence accumulating around the world to the benefits of adopting progressive policies to support shared care and gender balance in society, it's truly astounding that we're only just now debating legislative reform to parental leave that has been operating in some countries for multiple decades. Certainly, this bill is a vast improvement to Australia's Paid Parental Leave system, but let us not forget: Australia is actually far behind global best practice.

When Australia's parental leave scheme was first introduced in 2011, it was not—as described then by the minister for families—historic reform or a major win for working families when you compared it to the schemes available in other jurisdictions. On average, families in the OECD are typically entitled to more than 50 weeks of paid leave—that's 2½ times more than what we offer in Australia. In Finland new parents each have access to seven months paid leave, and policies such as these have been directly linked with better development outcomes for children, and support a more balanced division of labour between a two-parent family. Ultimately, I believe our goal as a society should be to provide families with the full support they need to enable them to choose who they want the primary carer to be, and when, without a gender bias lens being brought to the discussion.

While the addition of superannuation to the government's paid parental leave is an improvement, there is still far more that can be done to improve not only our parental leave system but also the other systems that play a pivotal role in shaping gender outcomes in this country and that support working parents, including the superannuation system more broadly and the early childhood education and care sector—specifically, providing universal access to early childhood education and care, and pursuing other measures to ensure a robust super system, including reforming the low-income super tax effect. Australia can and should go further in adopting international best practice not only in the payment of superannuation on paid parental leave but also in ensuring 26 weeks is the minimum leave entitlement for any family, phasing the scheme up to an eventual 52 weeks of paid leave while maintaining the principles of shared care and flexible arrangements, and furthering the 'use it or lose it' provisions to encourage greater shared care.

ABS data from 2021- 22 showed 24.7 per cent of respondents cited caring for children as the main reason they were not available for work, with women of all ages spending nine hours more per week on average on unpaid care work than men. While 26 weeks of paid parental leave covers the child's first six months of life, there are indisputable benefits in introducing 52 weeks of paid parental leave, spread across two parents. An increase from 20 to 26 weeks of paid parental leave alone boosts GDP by $900 million a year thanks to the increased workforce participation by mothers, while also boosting the average mother's lifetime earnings by $30,000.

We have an opportunity to increase these economic and social benefits even further by committing to expanding the Paid Parental Leave program to 52 weeks. When I surveyed my electorate of North Sydney, 75 per cent of respondents indicated to me that they felt the time they had off for paid parental leave was too short. We must also consider access to early childhood education and care, which, along with paid parental leave, is the other key policy to support employed parents with young children. Indeed, in many countries, these policies are coordinated in the sense that an entitlement to leave leads immediately into or coincides with an entitlement to early childhood education and care. Early childhood education and care is a vital input for our entire economy, which cannot function to its potential unless parents are able to work. Along with paid parental leave improvements, we need to ensure families have access to quality and affordable care to allow those that either wish or need to return to work to do so.

It's clear that families in my community face hardship when it comes to child care and returning to work. As one person said to me:

I've been on a waiting list since my son was 4 months old for daycare. We've decided to use a nanny, family and have split days off. My son is nearly 1 and it's been financially challenging, especially trying to buy a house in Sydney.

From my conversations with childcare operators, workers and parents, it's clear more federal government leadership, coordination and support are needed. Childcare centres are struggling with skills shortages while existing workers are overwhelmed and underpaid. Meanwhile, families cannot find space and affordability is a massive issue, with some facing fees of up to $200 a day.

Finally, alongside these changes to ensure superannuation is paid on parental leave, we must pursue other measures to achieve equality in super. The low income super tax offset should be changed to reflect current tax and super settings so lower paid workers don't pay more tax on their super contributions than their wages. The tax offset gives eligible taxpayers of annual incomes of $37,000 or less a refund capped at $500 into their superannuation account to help them save for retirement. Low-paid workers, who are predominantly women, are ultimately paying more tax on their super than they would pay on their take-home pay, and this is ridiculous.

We must also look for ways to reduce the impact of unpaid care on super balances. The Women's Economic Equality Taskforce report found women spend over 30 hours per week on unpaid care and housework, while men do 22 hours. It's work that props up the economy, but it's not valued or well understood and it certainly doesn't attract super. Proposals such as carer credit to compensate parents for super lost due to unpaid parental leave should be seriously considered by our government and our nation, particularly as the need for care is growing and we know it's performed, unpaid, by women.

In closing, this legislation is deserving of celebration. It is a modest step, but it is absolutely a step in the right direction. I truly thank this government for taking it. I'm not convinced that a government of another colour would have done so. However, in celebrating this progress, I urge us all not to lose sight of how much more work there is to do and there is to be done to elevate Australia's parental leave scheme and early childhood education and care schemes to ones that will truly allow women equal economic opportunities. This is instrumental in closing the gender pay gap, and it will mean all Australians, no matter their gender or financial situation, will be able to have families. Better parental leave and childcare policies not only could dramatically improve women's participation in the workforce but will also, importantly, shift our society forward. In that context, I encourage this government to see this development as a stepping stone on the road to a system that will rival even our Nordic counterparts. That's the kind of ambition we need to bring to Australian politics.

Carina Garland (Chisholm, Australian Labor Party) Share this | Link to this | Hansard source

The Paid Parental Leave Amendment (Adding Superannuation for a More Secure Retirement) Bill 2024 is a really significant piece of legislation before the House. It brings together really important and vital areas that Labor has always championed, which are universal superannuation, delivering paid parental leave and gender equality. I note, too, that this month marks the 30th anniversary of affirmative action being placed in the Labor Party rules. This legislation, like so much legislation, is an example of what happens when you have women at the decision-making table and when you think about the kinds of communities all of us here represent. This is good for families; it is good for children; it is good for the economy; and I am so proud to be part of a government advancing this.

It's really important, too, to reflect that many people have campaigned for a long time for superannuation to be paid on Commonwealth parental leave payments, to ensure that there are fairer retirement outcomes for women. That has been true since paid parental leave was legislated by a Labor government. That's a very long time of advocacy, and I want to pause and pay tribute to my friend—our friend, on this side of the House—the late Senator Linda White, who was passionate about this reform and fought tirelessly for this change. I am pleased that she was able to be part of a government that is now going to be delivering this significant and historic change, and I am really proud to have had the opportunity to work with her in the parliament and outside the parliament.

More than 180,000 women receive parental leave payments each year, making up 99.5 per cent of Commonwealth parental leave payment recipients, which means the inequity of the loss of superannuation has been felt almost entirely by women. From 1 July next year, the government will pay 12 per cent superannuation on top of Commonwealth paid parental leave to those taking Commonwealth paid parental leave. We also know that Commonwealth paid parental leave is much more likely to be accessed by those on lower than average incomes, which means there is an enormous benefit in paid superannuation to those families on lower incomes.

Analysis completed by the Association of Superannuation Funds of Australia shows that paying superannuation on paid parental leave, combined with the legislated increases to the super guarantee and the duration of paid parental leave to 26 weeks, will lead to an increase in superannuation balances at retirement of around $5,100. For a woman who received paid parental leave at age 28 for her first child and at age 30 for her second child—let's imagine that—the increase in her superannuation balance would be around $10,700. That is really significant, because we need to remember that superannuation leads to compound interest accumulating over time.

That's why I am very troubled to hear of the amendments put forward by those opposite which effectively ask women to steal from their own futures, to steal from their retirement and to lose that compound interest which is really key to the success of a superannuation system, and which, therefore, will do nothing to address the gender inequity that we see in superannuation balances between men and women. That is of course a really key consideration. An objective of this bill is to promote gender equality in superannuation. That cannot be realised if we entertain the awful suggestions from those opposite. I really would invite them to reflect on the robbery they are suggesting women commit from their own futures and on the gender inequity they'd entrench through their terrible suggestions.

We know that improving paid parental leave is critical reform. It's critical for families, critical for women and critical for the economy. Our government knows this well, and we know this well because that's what happens when you have 52 per cent of your party room comprising women. We know that paid parental leave is vital for the health and wellbeing of parents and their children. We know that investing in paid parental leave benefits everyone in our communities across our economy. We know that, if the settings are right, paid parental leave can advance gender equality.

Businesses, unions, researchers, experts and economists all understand that one of the best ways to boost productivity—which I think we all, in the chamber, agree we like to do—and participation in the workforce is to provide more choice and more support for families and more opportunity for women. Ever since we were elected and indeed before, when we were in opposition and throughout the last election campaign, those of us on this side of the House have been working hard to work to improve gender equality and to close the gender pay gap. Central to this have been the efforts put into improving paid parental leave for working families.

First, we made changes from 1 July 2023 to give more families access to the payment. We made it more flexible to support parents in the transition back to work and made it much easier for parents to share care by creating a single payment that both parents were able to access. Then, from 1 July this year, we delivered the largest expansion to paid parental leave since Labor established it in government in 2011. By expanding the scheme to a full six months by 2026, families will receive an important extra six weeks of paid leave following the birth or adoption of their child. And, importantly, while the government is supporting parents to take time off work after the birth or adoption of their child, we're also taking action here to ensure that this doesn't impact their retirement income. Through this bill, we are investing $1.1 billion over the forward estimates to pay superannuation on government paid parental leave from 2025. This is significant. This has been hard fought. This is going to make an extraordinary difference to many people's lives.

Taking time out of paid work to care for children is a normal part of working life for both parents. Paying super on government paid parental leave will help normalise parental leave as a workplace entitlement, just like annual and sick leave, and reduce the impact of parental leave on retirement incomes. The data is clear. When women take time out of the workforce to raise children, it impacts their retirement incomes, with women retiring on average with about 25 per cent less superannuation than men. Unfortunately, we know that one of the cohorts at greatest risk of homelessness and poverty are women who are over 65, who may not be able to access an adequate retirement income. This measure works to address that inequity and to take a really meaningful step to ensure that in the future women will not find themselves in that position.

Paying superannuation on government parental leave is an important investment, a vital investment, to help close the superannuation gap and make decisions, frankly, about balancing care and work easier for women—easier for families. For babies born or adopted from 1 July next year, all parents who receive paid parental leave will receive an additional 12 per cent paid directly to their superannuation fund. Importantly too, the contribution will be made annually by the Australian Taxation Office after the end of each financial year, and this will then include an additional interest component to address any forgone superannuation fund earnings—that compound interest I was talking about earlier—as a result of the payment not being made more regularly. Most parents won't need to do anything further to receive their superannuation payment, and the claim process for paid parental leave will not change.

On this side of the House, we know investing in paid parental leave is an investment in families. It's an investment in women's economic security, both now and in the future. Given the way superannuation works, it is about people's future security. It is also an investment in the broader economy. Our government's historic reforms cement paid parental leave as a Labor legacy, and I think they make really clear, again, the importance of the contribution of superannuation to the experience of people in this country, which has been something that only Labor was able to deliver. It was Labor that first introduced paid parental leave and superannuation. Labor always invests in a better future for Australian families. I'm really pleased to commend this bill to the House.

Kate Chaney (Curtin, Independent) Share this | Link to this | Hansard source

I rise to provide my support for the Paid Parental Leave Amendment (Adding Superannuation for a More Secure Retirement) Bill 2024. Parental leave is not a holiday; parental leave is not sipping cocktails on a beach. It is also not some form of long-term illness. But when people take leave because they're sick or they're having a holiday, they don't return to the office with a lower superannuation balance than their colleagues. It's so important that we pay superannuation on paid parental leave so that we're not disadvantaging parents in their retirement.

Many members of this House are lucky to have experienced parenthood and the challenges of their child's first year firsthand. Whilst new fathers are increasingly taking parental leave, it remains the case that women are still the primary caregivers in Australia more often, taking time out from their careers to do so. My personal experience lines up with this. I had a rewarding job before having kids. I took time off after having each of my three children. Even with a supportive husband, who is also a committed father, I subsequently returned to work part time instead of full time and sought out and accepted different types of jobs based on the need to balance my work responsibilities with the time I needed and wanted to spend with my kids. I worked part time for 17 years while my kids were young, and I fully understand the impact that caring for kids has on earning capacity and superannuation.

Economists refer to the motherhood penalty, which is how much of their previous earnings levels the average mother gives up after having children. In Australia it's huge at about 55 per cent, which is much larger than in most OECD countries. The average loss on earnings lasts for at least 10 years. While I made my choices freely, this data rings true in my own experience. I was very aware of this motherhood penalty in my own earnings and life journey. We've seen statistics showing that women aged 60 to 65 retire with 25 per cent less superannuation than men of the same age. Much of this is attributed to the caring responsibilities women take on.

While this bill will not completely fix this issue, it does start to rectify this gap. This bill will benefit about 180,000 families annually by providing an extra 12 per cent of their government funded paid parental leave as an annual lump sum payment of up to $3,000 to their super fund. The Parenthood has done financial analysis that shows that the compound interest on this contribution to superannuation could be as much as $30,000 extra in retirement savings per family per child.

I'm supporting this bill because it goes some of the way to mitigating the motherhood penalty. Families in the current cost-of-living crisis are having to make difficult decisions every day about how they spend their money, whether to take on a mortgage, which parent returns to work and how much parental leave they can afford to take. Paying super on paid parental leave gives parents better financial security in the longer term, something that's not top of mind at the time but makes a big difference over a working life.

Industries with a higher proportion of women in their workforce are particularly supportive of this bill. For example, it will greatly benefit nurses, midwives and assistants in nursing, who suffer inequity through loss of super while taking time out of the workforce to have children. An industry representative points out that women make up 89 per cent of the Australian nursing and midwifery workforce who, on average, retire with up to 40 per cent less super than men. That must change if working women are to have any chance of reaching a secure retirement with a comfortable standard of living.

It has been suggested that this superannuation entitlement be restructured to give women the choice of a cash payment or additional leave instead of a super entitlement. While a cash payment or more leave would, no doubt, always be welcome, I wouldn't support such an amendment because the purpose here is to remove the disadvantages for women as they approach retirement. It would be too tempting to take the additional payout without a thought for the long term. If the intention of those amendments that I have heard proposed is to increase support for women, or indeed parents generally, I'm very happy to consider additional supports, but they should be as well as the super entitlement, not instead of it.

I'm also supporting this bill in its current form because recognising the loss of superannuation during time taken off to look after children normalises paid parental leave as a workplace entitlement, the same as sick leave or annual leave. So, while there is more to do to address the motherhood penalty, I welcome this step to normalise paid parental leave and start to close the gap for women when they get to retirement age. I commend this bill to the House.

Justine Elliot (Richmond, Australian Labor Party, Assistant Minister for Social Services) Share this | Link to this | Hansard source

I rise to speak on the Paid Parental Leave Amendment (Adding Superannuation for a More Secure Retirement) Bill 2024. This bill is so vitally important for Australian families. In fact, it affects every parent, every child and every worker across our nation. It speaks to who we are as a society and what we value: fairness, equality, opportunity and the wellbeing of all Australians.

This bill represents a fundamental reform that will strengthen families, advance gender equality and boost our economic prosperity. The Albanese Labor government knows this because Labor governments have always known this. We know that paid parental leave is essential for the health and wellbeing of parents and their children. It provides a crucial period of bonding and care in those very early formative months, setting the foundation for much healthier, happier families. But, beyond the immediate benefit to families, investing in paid parental leave is a huge investment in our economy and our economic growth. It has the potential to increase workforce participation, enhance productivity and create a more equitable society. When parents, particularly women, have the support they need to balance those work and family responsibilities, they're more likely to return to work, pursue their careers and be part of the contribution to our nation's economic growth.

We're not alone in this view. In fact, many businesses, economists, unions and experts all recognise that one of the most effective ways to boost productivity and workforce participation is to provide families with more choices, more support and more opportunities. Of course, for so long many Australians, particularly women, have had to make difficult choices between career aspirations and opportunities and their caring responsibilities, and it is time for that to change, and that is what this government is doing.

The Albanese Labor government has been committed to making paid parental leave more accessible, more equitable and more flexible for all working families, and that flexibility is key. Our journey to reform began with critical changes implemented on 1 July 2023. These changes expanded access to paid parental leave, making it more available to more families than ever before. We also introduced greater flexibility, allowing parents to structure their leave in ways that best suit their needs and support their transition back to work, acknowledging the varying differences between families and their working circumstances. We also simplified the system, creating a single payment that both parents can access, making it easier for parents to share that care. This reform was designed to remove barriers and encourage shared parenting responsibilities, again promoting gender equality at home and in the workplace.

But these were just the first steps. We're now embarking on the largest expansion of paid parental leave since Labor first introduced it here in this House in 2011. From 1 July next year, we will begin extending paid parental leave to a full six months by 2026. This extension means families will have an extra six weeks of paid leave following the birth or adoption of their child, a vital period that allows parents time to bond with their children, establish important routines and support the emotional and physical development of their children. This expansion is, of course, so much more than just providing more time; it's about giving families more freedom to make choices that work for them. It's about recognising that every family is different and that our policies must be flexible enough to accommodate and incorporate all of those differences. By providing more leave, we empower parents to make decisions that best suit their specific family's needs, without sacrificing their financial security or their career progression, because taking time off work to care for a child should never come at the cost of a secure retirement.

This government is determined to ensure that paid parental leave does not adversely impact retirement income. That's why we're taking a historic step to pay superannuation on government paid parental leave from July 2025. We're investing $1.1 billion to ensure that every parent who takes leave to care for their child is also building on their retirement savings. This decision recognises that caring for children is a normal part of working life for both parents, and by paying superannuation on government paid parental leave we normalise parental leave as a workplace entitlement, just like annual leave or sick leave.

This reform will help reduce the financial impact on retirement incomes of taking parental leave, particularly for women, who have historically been most affected. The data is stark and cannot be ignored. When women take time out of the workforce to raise children it significantly impacts their retirement savings. On average, women retire with around 25 per cent less superannuation than men. This disparity is unacceptable, and it is a gap that we must close. By paying superannuation on government paid parental leave we take that crucial step towards closing the super gap and making it easier for women to make decisions about balancing care and work. This reform is not just about fairness; it's about economic justice as well.

For babies born or adopted after 1 July 2025, all parents who receive paid parental leave will receive an additional 12 per cent contributed directly into their super fund. The contribution will be made annually by the ATO after the end of each financial year, and it will include an additional interest component to compensate for any lost earnings that would have accrued had the payment been made more regularly. Most parents won't need to take any additional steps to receive their superannuation payment, and the claim process for paid parental leave will remain unchanged.

From 1 July 2026, when the Paid Parental Leave scheme is extended to 26 weeks, the maximum amount a family could receive in superannuation contributions will be approximately $3,000 per birth. This is a significant boost to retirement incomes, and it will make a real difference to the lives of so many Australian families. I know all across the country, and especially in my electorate, women I've spoken to have said what a big difference it will make to their families.

This government understands that investing in paid parental leave is more than just a financial commitment; it's an investment in our collective future. It's an investment in the security and wellbeing of our families, and of course it's an investment in the economic independence of women and the overall prosperity of our nation. We know that when families are supported children thrive. We know that when women have the resources and opportunities to participate fully in the workforce our economy grows stronger. We know that when we close the superannuation gap we build a fairer society where all Australians—all of them—can retire with dignity and security. We understand how important that is.

These reforms are part of a broader vision for Australia—a vision where families do not have to make that really hard choice between financial security and caring for their children. That's a terrible choice to have to make. This is a vision where both parents can contribute meaningfully to family life and the workforce without being penalised for doing so. This is a vision where women have equal opportunity to succeed in their careers and to enjoy a secure retirement. We know how important it is to have paid parental leave and to have superannuation paid on PPL. We've always been supportive of ensuring in particular women's economic prosperity and involvement.

In contrast to this, we have the opposition, the Liberals and the Nationals, who we know have spent decades trying to destroy the superannuation system. We've seen that over and over again. Of course, we now know they're walking away from their previous support for superannuation on paid parental leave. It is atrocious that it's actually happening. It's another stunt by the Liberals and the Nationals, and the usual negativity we hear from them. But the fact is that they have never supported superannuation. They fought it every step of the way—always—just like they've opposed our cost-of-living measures. In the past they've opposed so many superannuation measures. They opposed paid parental leave when we first brought it in, as we know. They said it was 'double dipping'. That's how they see it. Yet here we have another of their stunts, talking about changes to this historic reform that we want to bring in to assist Australian families.

On this side of the House, we are very proud to be building on our Labor legacy when it comes to paid parental leave. I was here in the House in 2011 when Labor first introduced paid parental leave, a truly historic moment. It is Labor governments that do that. And I'm incredibly proud to be here now speaking on the next great Labor reform to a scheme that we created and that we are building on. The bill serves as yet another reminder that it is Labor that continues to build a better future for all Australian families.

These historic reforms to paid parental leave are testament to our commitment to fairness, equality and opportunity for all. We strongly believe every child deserves the best start in life and every parent deserves the support they need to provide that start. We believe a fair society is one where everyone has that opportunity to thrive regardless of their gender or their family circumstances. And we believe so strongly that our economy is so much bigger and better and stronger when all Australians are empowered to contribute and be involved to their fullest potential.

These paid parental leave reforms that we are enacting today are such a vital step towards realising this vision. They're a bold and necessary step forward, and we're incredibly proud to be introducing this bill and to be fighting for these important reforms. And I want to acknowledge all those who worked for decades towards this moment, the people who advocated for these really important changes—and for the initial reform we bought in all those years ago for paid parental leave. It is Labor, again, that is adding to that, especially for superannuation on paid parental leave. I know there are many people throughout the nation who raised this issue and fought for it for so many years. We are so proud, as a government and as the Labor Party, to be introducing today what is a historic reform when it comes to having superannuation for paid parental leave. I commend the bill to the House.

Allegra Spender (Wentworth, Independent) Share this | Link to this | Hansard source

I rise in support of the Paid Parental Leave Amendment (Adding Superannuation for a More Secure Retirement) Bill to get superannuation on paid parental leave. One of the reasons I entered politics was because I wanted to support the economic empowerment of women. It's something that, to be honest, I have grown up with. It's probably my mum's greatest legacy to me personally.

If women don't fight for women, then it's not going to happen. We need to fight for women. This is about getting women to make their great contribution to this country, and the economic empowerment of women is absolutely critical to that. You are not going to get women with this economic empowerment if you don't have women in the room, and this is a lesson from this parliament. This is the first parliament to have over 45 per cent women in the room, compared with 36 per cent in the last parliament and around 30 per cent in the last three or four parliaments before this. Women are in the room, and this is making a huge difference to women's economic empowerment, including the bill that is here today in front of the House.

Why is the bill important? Women retire with around 30 per cent less super, and we know one of the greatest risks to poverty in old age is that lack of super, that lack of security. Some of the people experiencing the fastest-growing economic distress, including homelessness, are older women without significant resources and with not enough super. So this bill is absolutely important. Frankly, when you're taking time off to have and look after your child—and we know that women still do the vast majority of that child rearing, particularly in those early days—it's absolutely critical that you're still contributing to your retirement so you have those resources.

I want to briefly acknowledge the other changes that have happened in this parliament around women's economic empowerment, because they're absolutely critical. We have seen an increase in paid parental leave, which is important. What is particularly important about the increase in paid parental leave is that it includes more 'use it or lose it' for the second parent, which is typically a man in most families, so that we have more men taking part in raising their children. We're also seeing evidence of a closing wage gap between men and women. We've seen significant investments in child care to make it more accessible to more people in the country. Access to and the affordability of child care is still a real issue in my community, but we have made strides in this parliament. The final piece, I think, has been super on paid parental leave. These are all changes that I certainly welcome and that I think are really powerful.

Other changes are things like increased leave for domestic violence and raising the age of children for which single parents—again, typically women—are supported when they are raising children on their own. These are all improvements for women in this parliament and that is because women are finally in the room. However, I want to acknowledge that there is so much more to do in relation to women's economic empowerment.

Let's specifically talk to the bill, because the bill in itself will go some way to addressing women's economic empowerment. It means that superannuation contributions of 12 per cent will be paid on top of payments already made to parents under the government's Paid Parental Leave scheme. This will bring the government's Paid Parental Leave scheme in line with most of the private sector schemes. This is important. However, by Treasury's own admission, superannuation contributions on paid parental leave will only marginally reduce the retirement income gender gap. Treasury modelling predicts that the median female earner will receive a 0.17 per cent increase in annual retirement income as a result of this scheme. It makes a difference but it doesn't close the gap that we know is there. While it is closing, it is still substantial.

I'd like to come now to what will close the gap, to where we need to continue to fight and to some of the areas in which I will continue to fight now that this bill looks like it will go through the House and, hopefully, will get support in the Senate. I will continue to fight, particularly around the sharing of caring. That's because, when you look at the economic empowerment of women and why there is a continued gender gap, a significant part of it comes down to who does the caring. It's absolutely typical that women do more of the caring in so many situations. Eighty-eight per cent of primary care leave continues to be utilised by women, with only 12 per cent of primary carers leave taken up by men. This makes Australia unusual. Most other countries around the world—our compatriots in the OECD—do much better in terms of sharing the caring. We need to change the culture in this country around this. This is where I think paid parental leave needs further evolution and, honestly, in my mind, revolution.

Back in 2021 the Grattan Institute modelled a 26-week paid parental leave scheme, which is similar to the length of the current ambition on paid parental leave, but with an even greater proportion of time allocated to both parents under a 'use it or lose it' system. The economic benefits, primarily from increased workforce participation, outweighed the costs 1½ times. We know that, if we continue to further tilt the balance so that caring is really shared, this will do even more for women's economic empowerment.

However, there are also significant impacts both on men and on children. For men and male partners, if they take up more leave, there's evidence to suggest that they end up having stronger mental health and a better bond with their children. One of the issues that we face as a country is that men's suicide rates are three times those of female suicides. We know that men suffer from mental ill-health. Those strong connections with family are some of the factors that can help improve men's mental health. That is why this would be good for men. There's also evidence to show that this is better for kids. They're more likely to have strong and enduring relationships with both parents and also more likely to have a stronger sense of wellbeing from better sharing the caring. So this is—and has to be, in my mind—where we need to continue to push as a parliament. We need to better share the caring. This is about the economic empowerment of women, this is about the mental health and connection of our men, and this is about raising our kids better.

To sum up, the introduction of super on paid parental leave today is a necessary and very positive step to achieving true gender economic equity in this country. It is an important step, it's one that I'm proud to have fought for, and I'm proud to be speaking on it. However, we as a parliament need to keep the pressure on, because the gaps are still there, and there's much more that we can do across this parliament to make real changes.

Kate Thwaites (Jagajaga, Australian Labor Party, Assistant Minister for Women) Share this | Link to this | Hansard source

I am so pleased to be speaking on the Paid Parental Leave Amendment (Adding Superannuation for a More Secure Retirement) Bill 2024 today. Paid parental leave is good for parents, it's good for kids, and it's good for our economy. This reform that our Labor government is bringing into today to pay superannuation on government paid parental leave is a huge win for Australian families and a huge win for Australian women. This recognises that paid parental leave is a workplace payment, just like all the other types of leave that we have in our workplace, and that taking time out of the workforce to care for young children is a normal part of a working life. It builds on reforms that our government has already made to extend the length of paid parental leave and to make it more flexible for both parents to take time out for caring responsibilities.

We know that at the moment women retire with a superannuation gap, on average, of about 25 per cent less than men. That is actually unacceptable and it is not a given—that is something we can fix, and that is something we are starting to fix through the work our government has been doing to promote gender equity and through the work that will happen as a result of putting superannuation onto paid parental leave. From day one our government has been working hard to improve paid parental leave for working families. We made changes from 1 July 2023 to give more families access to paid parental leave, we made it more flexible to support parents in the transition back to work, and we made it much easier for both parents to share care by creating a single payment that both parents can access—that is a significant change. Then, from 1 July, we will be delivering the largest expansion to paid parental leave since Labor established it in 2011. By expanding the scheme to a full six months by 2026, we ensure families will receive an extra six weeks of paid parental leave following the birth or adoption of their child. We are now taking action to make sure that this expansion also supports parents' retirement income. We are building on the reforms we have already made to paid parental leave by paying superannuation on government paid parental leave from July next year. This is significant reform, and it is the reform that Labor governments do: supporting Australian families now, supporting Australian women now, and also setting them up for the best possible future.

Through this bill, our government is investing $1.1 billion over the forward estimates to pay superannuation on government paid parental leave. In doing so, what we make sure is that parents can take time off to care for their children in those critical early years, when we know that so much of a child's life and a family's life is being established. Paying superannuation on government paid parental leave helps to normalise paid parental leave as a workplace entitlement, just like annual and sick leave, and it reduces that gap that we have on women's retirement incomes.

This is something that I have been passionate about for many years, and it is one of the reasons I am so pleased to be standing here today. Paid parental leave is a proudly Labor reform. It was Labor, under the leadership of Prime Minister Julia Gillard and my predecessor as the member for Jagajaga Jenny Macklin who introduced Australia's national Paid Parental Leave Scheme on 1 January 2011. It is really important that we do not underestimate how crucial that leadership was to making paid parental leave a reality in this country. The reality at the time was that we were a laggard, and it took a Labor government and Labor women to make sure that Australia got its first national paid parental leave. All the data tells us that since that scheme was introduced it has made a massive difference in women's life, particularly for women who work in lower-paid or casual industries and who, in the past, didn't tend to receive any paid parental leave at all. At the time of paid parental leave's introduction in Australia, I worked with Jenny Macklin, and it was certainly a busy period of reform. Over the course of a few years, we introduced the NDIS, we made important changes to our social security system, we worked on First Nations policy and we introduced paid parental leave.

At that time and since then I've had the opportunity to speak to women right across the country about the significance of this reform, about the change it has made and the security they feel in their working life and about the ability it has given them to start their journey right when it comes to being a family. In particular, this goes for women in areas like retail and women in hospitality and small businesses. These are all areas where, previously, women had no access to any form of paid leave. They are finally able to take the time they need to look after their baby without having that financial stress.

As I said, this is something I have been passionate about for a long time and in fact it's something I spoke about in my first speech in this place, five years ago. I spoke of it then in the context of a coalition government which very clearly did not have any appetite for reform or improvements when it came to paid parental leave. You will excuse me for quoting myself, but at the time I said:

Labor started making it easier for parents to juggle work and family when we introduced paid parental leave. It has made a huge difference in the lives of many Australians, but there is more work to be done. I am convinced that we need a culture shift in our workplaces so that they are no longer built on the premise that there's a wife at home who is the primary carer. We need to address the bias—conscious or not—that after a baby is born it is women who will work part time before the children start school, who will carry the mental load and who in some cases will leave the work force forever.

Five years on, and two years into the life of this Labor government, I am so pleased at the substantial change we have made to so many of those points. Since the election of the Albanese Labor government, the reforms we have made to expand paid parental leave and make it easier for both parents, for women and men, to take leave and share the care are so important.

This bill today is the next step in these reforms. It is a Labor government that is making this happen because we understand the reality of modern Australian families' lives. We understand that women want to be supported economically to take that time out to look after their children, but we also understand that Australian men want the flexibility to do that as well. They want to be able to share the care. So part of the reforms we have introduced include 'use it or lose it' provisions for the secondary carer, which is really important in terms of that uptake from men.

The other part we've seen, alongside the reforms that the Labor government has brought in, is that the private sector is also improving their schemes and recognising that modern Australian families want to be able to take this time. They want the flexibility of being able to take paid leave for both men and women, and it is really heartening to see that change in culture in workplaces, normalising both parents taking leave and taking time to get their family on the best possible footing in those crucial early months of their child's life.

I want to acknowledge that this is work the government has done not on its own but across the board with a lot of support from other organisations. We have had support from the Business Council of Australia, The Parenthood, the Brotherhood of St Laurence, the Australian Council of Social Service, Diversity Council Australia and Impact Economics and Policy—all doing important work. I want to say a particular thank you to the union movement, who I know have fought for this reform and for paid parental leave for a very long time, including unions such as the ASU, the SDA and others.

Unions have been longtime advocates for expanding and reforming paid parental leave. They are at the coalface of recognising both the need for and the benefits of this. I want to highlight in particular the tireless advocacy on this issue from the late Senator Linda White. Linda's time as a senator in this parliament was short, but her decades as a leader with the ASU saw Linda work tirelessly to improve the lot of workers and women workers in particular. Seeing superannuation paid on parental leave was an issue that Linda championed for at least a decade alongside ASU members, particularly through the Not so super, for women report in 2017. This advocacy has really meant we are now where we are today. So, while I am very sad that Linda is not here to be able to see this bill pass through the parliament, I know she would be so proud to see that work resulting in this big win for Australian women and Australian families.

While we know that our paid parental leave reforms are widely supported in the Australian community, unfortunately it seems that not everyone in this place is a fan. In fact, the track record of those opposite when it comes to paid parental leave and supporting paid parental leave is pretty poor. The Leader of the Opposition was a cabinet minister in previous Liberal governments that accused women of double-dipping when they were trying to access both the government scheme and their employer funded scheme. We do know at the moment there are members of the Liberal Party who see paid parental leave as a welfare payment rather than a workplace entitlement. Again, it does seem like every time this government puts up a positive plan for Australian women, a positive plan for Australian workers, those opposite want to quibble and walk away from it. There is a pattern here, and it is a pattern of saying no to things that advantage Australian women. Labor will of course always stand up for Australian women. We understand the realities of their lives, and we are working to make their lives better.

Here are a few other moments that we might have forgotten from those opposite and their track record when it comes to paid parental leave. We had former Prime Minister Tony Abbott, who, in opposition, promised a rolled gold scheme. Of course, he never delivered on that scheme—again, a tendency of drift, of a failure to support women in this country. Now, most recently, we have just seen the opposition start to engage with this bill, with the idea of putting superannuation on paid parental leave. I am sorry to say that it is not an intervention in support of Australian women. It is not an intervention in support of financial security for Australian women in retirement. It is not an intervention in support of that structural work to get the equality that we need in this country. No—those opposite once again are saying no. It is the usual negativity that we get from Peter Dutton, the Leader of the Opposition, and those opposite, who did seem to indicate earlier on that they were going to support this measure but now are walking away.

What we know is that there are long-term benefits from paying superannuation on paid parental leave. It does go to those structural inequalities. It goes to the way we view women's participation in the workforce. It goes to the way we view taking time out to care for young children. By saying no to this, essentially what those opposite are saying is that they're not interested in fixing this problem. They are not interested in doing the work to make Australian women more equal, to support Australian women to have secure retirements. They would rather walk away from a bill that gives Australian women and men superannuation on their paid parental leave. I'm not often surprised by those opposite, but I am surprised that they could not bring themselves to support this proposal for women's equality, for Australian families, for our economy more broadly, to put superannuation on paid parental leave. Mums and dads across the country will benefit from this. Australian women will be able to see some movement in that 25 per cent superannuation gap that we have. So those opposite really do need to explain to working women and to working men now why they don't want them to have paid parental leave on their superannuation. They can look, at the moment, at older women in this country who are facing a more uncertain retirement than their male counterparts often are because they haven't had the benefit of this kind of reform.

So, again, I am so pleased, so proud, to be standing here talking about this great Labor reform, so pleased for the very real difference it will make in the lives of Australian families, so pleased for the difference it will make to Australian workplaces, so pleased for the signals it will send right across our country about how we value the work of caring for our children, setting them up on the best possible path and setting our country up for the best possible future, making sure that we are supporting women to have a more secure retirement, recognising the contribution they make. This is a great Labor reform. It will make a significant difference. I commend the bill to the House.

Zali Steggall (Warringah, Independent) Share this | Link to this | Hansard source

In debating the Paid Parental Leave Amendment (Adding Superannuation for a More Secure Retirement) Bill 2024, we can't really start without acknowledging that we are still a long way from gender equality in Australia. Whilst this bill is a step in the right direction, we still have a long way to go. Women aren't paid as much, they don't have as much super by the time they retire and they are more likely to end up in poverty than men. Steps in the last few years to address areas of gender inequality and equality have been taken, and I very much welcome them. But we do need more action to narrow the gender pay gap, increase paid parental leave and close the super gap between men and women.

Today, the government is acting to ensure that those on Commonwealth paid parental leave receive super. This is important progress. Time out of the workforce caring for children on paid parental leave should not come at a detrimental financial cost for, more often than not, women. We've seen the motherhood price, that cost which is ultimately the cost of parenthood where that cliff of earnings for women often occurs as soon as they start having children. It's deeply frustrating that we still have those systemic inequities in Australia in 2024.

Research shows that in the years approaching retirement age, the gender superannuation gap can be anywhere, still, between 22 per cent and 35 per cent. This is still an enormous gender gap in superannuation wealth and it has consequences. Modelling from Laneway Analytics shows Australian mothers have missed out on some $3.3 billion in super since the introduction of government paid parental leave in 2011 because they have not received super on that leave. That is all because of taking time out of the workforce to have children.

Individuals with low superannuation balances are more likely to rely on the age pension in retirement, so that's why it matters. It matters that women have sufficient superannuation at retirement age. Around 55 per cent of those collecting the full pension are women. The systemic inequities are holding women back economically. The gender pay gap is still contributing to long-term gender inequality.

Financial insecurity in retirement contributes to poverty and housing insecurity in older women in Australia. A recent report from Super Members Council found that women today are expected to retire earlier and live longer than men but currently retire with one-third less super. The same report found that paying super on paid parental leave would leave a mother of two around $2,500 better off at retirement and therefore make a meaningful reduction in the gender super gap, which currently sits at around $50,000. We know this gender gap in superannuation is a problem. This bill helps address it, so it's very welcome.

The government Paid Parental Leave scheme is something we should be proud of, with around 180,000 families accessing the scheme each year all around the country, including in Warringah. Established in 2011, it provided up to 18 weeks of pay at minimum wage to eligible working parents. There have been further tweaks and changes in subsequent years including dad and partner pay, providing two weeks at the same rate for the father or the partner of the paid parental leave recipient. From July 2020, families have had the option of taking the first 12 weeks of paid parental leave in a continuous block then using the final six weeks as flexible paid parental leave, including using it to return to work part time by using the leave on a part time basis or sharing the leave with someone else.

Last year, the government legislated to increase the number of weeks of paid parental leave, expanding it in phases from 20 to 26 weeks by July 2026. While I welcome that, we are still way behind other countries in terms of the scale, scope and length of time of paid parental leave. We really do need to accelerate to catch up with other countries. Research by the Grattan Institute shows that shared paid parental leave boosts a mother's earnings and boosts our entire national GDP.

We also need to see an increase in men or other parents taking paid parental leave. Too often, it is the mothers that are taking it and taking a hit to their careers and their earning capacity, so there really needs to be more work from the government to ensure an increase to the shared component or a use-it-or-lose-it proportion of the scheme to encourage and incentivise more partners to take up paid parental leave. Grattan modelling suggests that increasing the entitlement to 26 weeks shared between parents would cost the government some $600 million per year but would add $900 million to GDP, so there would be a positive outcome of $300 million as well as a boost of some $30,000 to a mother's lifetime earnings. I would like to see the expansion time shortened in relation to paid parental leave, but I was pleased to see at least a minimal expansion be passed through the parliament this term.

As recommended in the final report from the Women's Economic Equality Taskforce, in 2023, we are legislating the payment of superannuation on paid parental leave, and it will come into effect from 1 July next year. So I welcome this, but I think there are still a few areas of focus for the government—in particular, coming up with some form of acknowledgement that older woman frequently take time out of the workforce to care for elderly parents. That is a time at which they lose earning capacity and superannuation, and there have been proposals put forward to start to remedy that.

I welcome this bill and it's intent. But I should note that, while the coalition's second reading amendment has some elements that I support, I am concerned with an attempt to yet again undermine the superannuation system, through the third part of the amendment, which seeks to encourage early withdrawals for a variety of reasons, particularly for the collection of this paid parental leave component as a block to be used to meet the cost of the child. Whilst I appreciate the cost of having children is great—I certainly have been there and I know that is really hard—the point of super is to ensure a comfortable retirement. It's to ensure people aren't living in poverty in retirement. If we allow the amendment, as proposed by the opposition, for the receipt of the paid parental leave payment as a block and to be available now, then we undermine the very purpose of this, which is to ensure women do not have inequality at retirement when it comes to their super. I simply cannot support that.

We've seen this happen before, during the COVID pandemic. Whilst it was maybe well intentioned to ensure that people struggling financially could access finance, we saw moves to be able to withdraw from superannuation two payments of up to $10,000. The difficulty with that was that overwhelmingly it was women, and overwhelmingly women are now finding themselves with significantly less super for their retirement. The Australia Institute found that, between April and December 2020, 1.5 million women drew down their super, and that is one-quarter of the entire female workforce. Some $14.9 billion was stripped from women's already small retirement savings, and some 345,000 women completely emptied their accounts. That is really concerning because that means a huge number of women will be exposed when they come to retirement age. What was even more dramatic was it overwhelmingly younger women. That means that, after withdrawing what little amounts were in super, they won't have as much opportunity to grow their super through their working life into something substantial at retirement age. All this undermining of the intent of super was really concerning, and it's really important to preserve that.

At the moment, I believe this amendment is fundamentally undermining what the bill is trying to achieve, which is to close the gap in super between men and women at retirement age. So I have to ask the question: Is it the opposition's view that women should continue to be disadvantaged in retirement? Should they continue to have less super? Otherwise, I don't understand the intent of this amendment. If it's to better support families to meet the cost of children, then that should be a separate proposal; that's something that could be put to the budget. For example, is it a baby bonus like what used to happen in the Howard years? But it should not be via undermining superannuation.

There's still more to do to achieve better economic outcomes for women and better economic outcomes for Australia. These policy suggestions, as outlined by the Women's Economic Equality Taskforce, are ones that I've supported and called for: increasing investment in childhood education and abolishing the activity test, which requires both parents to be working to access childcare subsidies; boosting the availability of high-quality, flexible work and strengthening the rights of employees to flexible work and family-friendly working arrangements; encouraging employers to set gender equality targets and strengthening reporting obligations to include meaningful benchmarks; and introducing a tax offset for people with caring responsibilities who are re-entering the workforce, to curb the motherhood penalty facing women which means they earn less.

I want to repeat what I've said in the debate in relation to the Superannuation (Objective) Bill earlier this year, which is that many of our First Nations people in our communities never get to realise the benefit of superannuation. When we talk about superannuation, even in the context of this bill, there is a whole other level of disadvantage when it comes to First Nations Australians. Many First Nations people just don't get to realise the benefit of superannuation. There's a huge amount of policy work that needs to be done to improve the retirement outcomes and access to super for First Nations Australians. The 2020 Retirement Income Review found that many First Nations people were likely to have either no superannuation or low super balances at retirement way more often than non-Indigenous Australians.

As of June 2022, $16 billion was sitting in the tax office lost or unclaimed, so that's an area of concern. Analysis shows that the issue of lost and unclaimed super disproportionately sits in postcodes with larger First Nations populations. It does beg the question: Is this an area that's being overlooked? Do First Nations Australians need some assistance? Do we need to focus on why there is so much unclaimed super sitting disproportionately in those postcodes? Worse yet, the full extent of the impact of lost super on First Nations communities isn't quantified. Why? Because super funds don't collect data that's specific to Indigenous people.

Whilst I welcome these changes, I think First Nations women are in an even-worse situation than non-Indigenous women in Australia, so, whenever we are putting forward legislation that is seeking to address inequalities, we must make sure we have a specific lens and a specific focus on those that are at greater risk and are experiencing so much more inequality on top of the gender inequality. It's a good step, and I certainly commend the bill to the House and will be supporting it. It's positive, but, certainly, my call to the government is more can be done in this respect. I do call on the minister and the government to focus on how we're going to help First Nations Australians access super.

Alison Byrnes (Cunningham, Australian Labor Party) Share this | Link to this | Hansard source

The Albanese Labor government has made significant investments to improve the lives of Australian women, with a strong focus on economic equality, safety and health. For the first time in history, women make up over 50 per cent of our government, reflecting our commitment to ensuring women's voices are truly heard. In the latest budget, we invested more than $160 million to women's health initiatives, addressing critical needs such as targeted treatments for breast cancer and expanding support for breastfeeding services. We committed $1.9 billion to expand eligibility for the parenting payment single, allowing single principle carers, most of whom are women, to receive support until their youngest child turns 14, which is an increase from the previous cut-off age of eight.

Our government is focused on ending the national crisis of gender based violence, including violence against children and young people. Just last week, National Cabinet agreed to a comprehensive $4.7 billion package that harnesses important opportunities to work together to prevent violence and support legal services. There has been $1 billion dedicated to providing social housing for women and children fleeing violence, ensuring they have a safe space to rebuild their lives with dignity and security.

Under Labor, the gender pay gap has dropped to a historic low of 11.5 per cent, as of August 2024. We have a little way to go on this, but, at least, we have a historic low at the moment under our government. Our government made a commitment to close the gender pay gap, and we have seen that pay gap drop to an all-time low over four consecutive reporting cycles. It is an incredible achievement, but, as I said, there is still more work to be done to close this gap further.

Since we have been in government, women are earning on average $173.80 more per week than under those opposite. We are also proud to have backed a 15 per cent wage increase for aged-care workers, over 85 per cent of whom are women. We have also announced that there will be a 15 per cent increase to wages for early childhood education and care workers. This wage increase will be tied to a commitment from childcare centres to cap fee increases, ensuring that workers are fairly paid without passing additional costs on to families. We recognise the essential care both aged-care and early childhood education and care workers provide and we want to ensure they are fairly paid for their work. We want Australians to earn more and keep more of what they earn. From 1 July this year we delivered a tax cut for every Australian woman taxpayer, offering cost-of-living relief. This tax cut meant a bigger tax cut for 90 per cent of Australian women taxpayers. These cuts benefit workers in key sectors like child care, disability care and aged care, which have a predominantly female workforce with more than 95 per cent of those taxpayers to receive a bigger tax cut.

We have done so much since coming to government but there is still a lot of work to be done. The Paid Parental Leave Amendment (Adding Superannuation for a More Secure Retirement) Bill 2024 is another step forward for Australian women. We all here know it was a Labor government that introduced paid parental leave in Australia in 2011. The Gillard government introduced this groundbreaking reform that provided 18 weeks of paid parental leave to eligible parents. This was a significant step forward in supporting working families, ensuring that new parents, particularly mothers, were able to take time off to care for their newborns without the stress of losing income. While this was a huge relief for new parents and families and provided the much-needed financial support, it didn't address the long-term economic impacts on women.

Women are more likely to take on the role of primary caregiver over men and this role often requires them to take extended periods of leave from paid work. This time out of the workforce, even if they are on paid parental leave, impacts on their financial security, particularly when it comes to retirement savings. The data is clear. When women take time out of the workforce to raise children, it impacts their retirement incomes, with women retiring on average with about 25 per cent less super than men. This disparity, which is often referred to as the 'motherhood penalty', is a result of the cumulative effect of lower wages, interrupted career progression and the absence of superannuation contribution during periods of unpaid care.

This bill aims to address this inequality by introducing superannuation contributions on government funded paid parental leave beginning in July 2025. This is a significant step towards closing the gender gap in retirement savings and ensuring that women are not penalised for fulfilling their caregiving responsibilities and choices. The bill will see the government invest $1.1 billion over the forward estimates to pay superannuation on government paid parental leave from July 2025, benefiting many Australian families each year.

For babies born or adopted from 1 July next year, all parents who receive PPL will receive an additional 12 per cent paid directly to their super fund. The contribution will be made annually by the Australian tax office after the end of each financial year and will include an additional interest component to address any forgone superannuation fund earnings as a result of the payment not being made more regularly. Most parents won't need to do anything further to receive their superannuation payment and the claims process for paid parental leave will not change.

By ensuring that superannuation is paid on paid parental leave we are sending a clear message that taking time out of the workforce to care for a child is not a career setback but an essential part of life that should be supported and valued. Paying super on government parental leave is an important investment to help close the super gap and make decisions about balancing care and work easier for women. This reform will also help to normalise parental leave as a workplace entitlement, much like annual leave or sick leave, and it will help that both men and women will be able to take time off to care for their children without fear of economic disadvantage.

The Albanese Labor government's commitment to expanding and improving paid parental leave is clear. We have already taken significant steps to modernise the scheme, to better meet the needs of Australian families. From July 2023 we introduced a more generous family income test, making it easier for more families to access the payment. We also made the leave more flexible, allowing parents to share the care and take leave in a way that suits their individual circumstances. In July this year we increased paid parental leave from 20 weeks to 22 weeks, marking an important step towards supporting new parents. In July next year, we will further extend it to 24 weeks, and, by 2026, we will expand paid parental leave to the full 26 weeks. This gradual expansion will provide families with the time they need to bond with their newborns, support their transition back to work and reduce the pressure on mothers to return to work before they are ready. This expansion is expected to benefit around 180 families each year, giving families the choice to use the scheme in the way that best works for them.

This reform also aligns with the broader goals of our government's economic plan. Alongside tax cuts, investments in cheaper child care and workplace relations reform, the paid parental leave amendment is part of our strategy to enhance women's economic security. By ensuring that women earn more, keep more of what they earn and retire with more, we are working to build a more inclusive and equitable economy. It is important to recognise that this bill is not just about women; it is about families, children and our society as a whole. When we invest in the economic security of women, we invest in the wellbeing of families and the future of our children. On this side of the House, we know an investment in paid parental leave is an investment in families, in women's economic security and in the broader economy. We create a society where everyone, regardless of gender, has the opportunity to thrive and contribute to the community.

The importance of this paid parental leave amendment cannot be overstated. It is a critical step towards gender equality, economic security and social justice. It builds on the legacy of past Labor governments, who have consistently fought for the rights of working families. From the introduction of maternity allowances in 1912 to the Paid Parental Leave scheme in 2011 and even the creation of Medicare and the NDIS scheme, Labor has always put Australian families first. Today we have the opportunity to continue this legacy by supporting this bill and ensuring that all parents, regardless of gender, have the financial security they need to care for their children and retire with dignity. This bill is a bold and necessary reform that will make a real difference in the lives of Australian families. It is a step towards a fairer, more equitable society and it is an investment in Australian families.

Debate adjourned.